Large Global Organizations increasingly offer Remote SAP Shared Services & Access to their internal divisions, subsidiaries, group companies located in other countries.

In all such cases, for a harmonious long term business relationship and project success, they must be open in their sharing of internal technical & financial information as regards the SAP project scope deliverables and the Costs (both Fixed & Variable) Burden on the user organizations.

In a Kaytek SAP R/3 Consulting Analysis for a Large Multinational Customer, we discovered fuzziness as regards SAP technical and financial parameters and reluctance on part of the Foreign Shared Services Internal Team to provide accurate information to their user customers in their other group units.

Key Information about the SAP Installation Environment (System Landscapes,Application Modules, Scope of Customisation, Time lines, Milestones) was withheld from the client unit.

SLA (Service Level Agreement) & other quantitative details were not defined precisely for optimal
project execution for the SAP services in the proposed contract.

Numbers were provided only as regards a few Services items leading to incomplete budget figures.

This led to user frustration.( 2nd September 2007)

Offshoring Of ERP Implementations

Consider an Analogy of an ERP system to a car.

You need a car to move from one point to another.

Your organization needs an ERP system to move from one state (Revenues,
Expenses, Stakeholder's Satisfaction) to another.

Is there any difference between an ERP system and a car ?

No.

To drive a car, you as a driver need a set of keys and the car needs
gasoline.

As simple as that.

To drive an ERP system, you need working functionality and obviously data.

Functionality has to be provided by the ERP Vendors.

Data by the organization.

As simple as that.

Offshore Web-Hosted ASP (Application Service Provider) ERP Solutions that are fast coming up on the immediate horizon will enable your organization to keep your data within the secure and private confines of your organization.

Also, the power of virtual private networks (VPN) will give you the advantage of centralized functionality and cheaper offshore resources and obviously much lower costs.

ERP Offshoring can give you the best of both worlds.

Improved ERP Functionality via Offshore Hosted Solutions. Also an opportunity to pay the ERP vendor either by volume / value of your ERP transactions or by business outcomes.